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RGF offers thoughts on United’s future stadium ambitions

While RGF is pleased by Albuquerque voters’ overwhelming rejection of the proposal to build a taxpayer-financed soccer stadium near downtown, we recognized all along that the Team was not going to give up their quest for a new stadium.

Channel 7 KOAT laid out some ideas including potential stadium locations on tribal lands. RGF expects that, given the massive surpluses available to the Legislature and Gov. Lujan Grisham, we could see significant state dollars used to fund a stadium even if Albuquerque voters have rejected the concept.

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A good night for reform-minded leadership nationwide/in New Mexico

If you’d like to listen to Rio Grande Foundation president Paul Gessing discuss the 2021 election results (and numerous other issues later on), check out his recent interview with Jim Williams of KLYT 88.3FM on ABQ Connect. Paul is a regular guest on Jim’s show, but he has regular guests on a variety of local issues of interest.

In terms of local election results, it was obviously disappointing to see Mayor Keller who has done such a poor job managing public safety and the homelessness problem win so handily in Albuquerque. But, the taxpayer-financed United Stadium supported by Keller (and opposed by the Rio Grande Foundation) lost 2-1.

In terms of City Council, the West Side saw the ouster of two incumbents in favor of former Councilor Dan Lewis and newcomer Louis Sanchez.

Two other races are heading to a runoff with the requisite early voting and an “election day” of December 7. Those races include conservative leaning candidates Lori Robertson (District 7 in the mid-northeast heights) and Rene Grout (District 9 in the northeast/southeast heights).

APS school board also saw seats shift from union-backed candidates to more reform-minded candidates including Courtney Jackson, Crystal Tapia-Romero, and Danielle Gonzales .

Unfortunately the reform wave did not reach Las Cruces city council and the Foundation’s own Patrick Brenner lost in his bid for school board in Rio Rancho.

Nationally-speaking, Virginia’s governor’s race was won by Republican Glenn Youngkin in large part because of his pro-education reform, anti-CRT stances.

In New Jersey in what could have been an unprecedented upset, the Republican fell just-short.

Overall, it was a good night for conservatives and those that believe parents, not the unions and bureaucrats should control education.

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On KOAT Channel 7 RGF Reacts to poll showing United Stadium lacks support

Early voting at the county clerks’ offices is taking place now. A new poll says that overwhelming majorities of Albuquerque voters are against the use of taxpayer dollars to finance the stadium.

While gratified by this news, we recognize that polls are often inaccurate and that the only poll that REALLY matters is the actual election. So, with this stadium and numerous other important issues on the ballot, be sure to GO VOTE (and bring a friend or family member)!

Check out the discussion Gessing recently had with KOAT Channel 7 here.

 

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Education Local Government Notable News Open Government Top Issues Videos

Talking APS property tax with KOAT Channel 7

As discussed in a recent blog post here there is an Albuquerque Public Schools property tax issue on voters’ ballots this November. As seen below the ballot language certainly seems to indicate a property tax increase, but in this story for which RGF talked to KOAT Channel 7, APS claims it is NOT a tax hike.

We looked extensively on the APS website and found nothing, nor does the full ballot text on our sample ballot (find yours here) have any clues.

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United releases TV ad on stadium: understanding bonds and taxes

In their quest for a new soccer stadium, the New Mexico United have released a new TV ad. We haven’t seen the ad on local TV yet, but you can see it for yourself in this KOAT 7 story. RGF president Paul Gessing adds a bit of balance to the story near the end.

Aside from the usual claims about “jobs” and civic pride the ad relies heavily on the idea that the ballot measure is a “bond” that doesn’t raise taxes. Of course, that is akin to saying that a family should put all of its spending on a credit card because they aren’t actually spending anything right away.

Bonds require taxes in order to be paid off. In this case it is going to require gross receipts tax revenues. And, other priorities like law enforcement and roads will receive fewer dollars than they otherwise would. Finally, of course, taxes COULD go down in the absent of the stadium.

 

 

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RGF President reacts to United pledge of financial support for new stadium on KOAT Channel 7

With Albuquerque voters largely skeptical of the proposed taxpayer-funded United Soccer Stadium, the team has decided to pledge $10 million towards the facility. 

RGF’s president Paul Gessing weighs in on this development in this story. Gessing’s comment for this story is limited to saying that the team should fund “a majority” of the stadium that will cost at least $70 million and will likely cost up to $100 million based on numerous unknown factors including construction materials and the unknown location of the proposed stadium.

Needless to say $10 million is nowhere near half of the stadium’s cost.

Of course, there remain so many unknowns surrounding this project including the actual site. The Foundation has previously discussed numerous additional issues with the proposed facility. 

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RGF talks United Stadium finances on KOAT 7

RGF’s Paul Gessing recently sat down with KOAT TV Channel 7 to discuss financial details for the proposed New Mexico United Soccer stadium. There are more questions than answers at this point in the discussion which is unfortunate given that voters probably won’t have much more information than what is currently known when they go to the polls in November.

The time duration of the bond is ONE question discussed in the story, but the location of the stadium, final cost of the project, and source of money for the difference between the $50 million bond  and the final cost which will be no less than $70 million and perhaps much more are unknown.

In this story Councilor Davis asserts that the “gap” between the $50 million bond and the final cost of the stadium could be somehow filled by leveraging lease payments from the team. Of course no lease payment mechanism has been agreed to at this point, so these are purely speculative statements by Davis both on the payments themselves as well as what, if anything, those could pay for.

Click here for a link to the story.

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Keller using shiny stadium to distract from rampant crime

This article first appeared in the Albuquerque Journal on August 10th, 2021.

Albuquerque Mayor Tim Keller has decided that, despite rampant crime and a homeless problem that has grown dramatically worse on his watch, building a new soccer stadium for New Mexico United should be a top city priority. The stadium itself, to be located somewhere in the vicinity of Downtown, will cost taxpayers in excess of $70 million. That doesn’t include land acquisition, parking or inevitable cost overruns.

If the City Council approves the deal, Albuquerque voters will vote on whether to finance the project this November. It is difficult to see how financing a new soccer stadium is anywhere near the top of the city’s agenda. Albuquerque is a city with serious problems.

Recently the Journal reported on rampant crime along East Central. Of course, crime and homelessness are rampant along Central, Downtown and in many parts of our city. It would be far easier to name the few places in Albuquerque where there is not a significant crime and homeless problem than to name all the places that have issues.

In a recent report WalletHub identifies the city of Albuquerque as having the fourth-highest increase in homicides per capita in the nation (2020 vs 2021). Combined with Albuquerque’s already high crime levels before the pandemic, public safety would top most lists for local needs.

Notably, the Albuquerque Police Department budget has not changed substantially in recent years. By no means am I suggesting more dollars always result in better outcomes, but the perceived lack of prioritization on public safety implicates Mayor Keller’s belief that crime is not as important as building a stadium. Or, perhaps, as he heads into his reelection campaign, he is trying to change the subject from crime to stadium.

And then there is the Downtown location. State and local governments have spent decades trying to revitalize Downtown Albuquerque with little success. With safety and homeless problems only getting worse and Downtown businesses still not recovered from the one-two punches of COVID-19 lockdowns and protests, this is a particularly risky time to invest taxpayer dollars in a Downtown stadium.

On the other hand, New Mexicans, not just locals, have flocked to The Pit, Isotopes Park and UNM Stadium for decades. These facilities are all located in the same area of town, have abundant parking shared among the various facilities and little in the way of crime or homeless issues. United does extremely well in attendance at Isotopes Park, allowing the team to vault to the top of attendance rankings in the USL.

It seems Keller is a believer in “Mad Men’s” Don Draper school of thought: If you don’t like what’s being said, change the conversation. He has failed in the basic government task of public safety and keeping the city clean, so now he’s distracting voters with a shiny new stadium.

In the end, economists across the political spectrum agree that taxpayer-funded stadiums are economic-losers.

To that end, the St. Louis Federal Reserve’s May 2017 report “The Economics of Subsidizing Sports Stadiums” concluded, “Rather than subsidizing sports stadiums, governments could finance other projects such as infrastructure or education that have the potential to increase productivity and promote economic growth.”

I urge the City Council and ultimately the voters to heed their advice.

Rio Grande Foundation is New Mexico’s free-market research institute and think tank. An advocate for open government, the author leads the foundation’s government transparency and accountability efforts.

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Economy Local Government Notable News Spaceport Tax and Budget Taxes Top Issues

Sir Richard Branson Should Pay His Own Way Into Space Instead Of Robbing New Mexicans

The following appeared on July 21, 2021 in The Federalist:

The world is in awe that billionaire Sir Richard Branson has finally accomplished his 17-year goal of achieving spaceflight. On July 11, 2021, Virgin Galactic’s spaceship Unity reached 53.5 miles above the Earth with a crew including Branson. They spent a few minutes in zero gravity and returned safely to the runway of Spaceport America near the small town of Truth or Consequences, New Mexico. Congratulations!

The international scene is abuzz with this latest and undeniably impressive addition to Branson’s resume: but at what cost? Branson launched his flight from Spaceport America, a project initially conceived as early as 1992 when the Southwest Space Task Force was formed to develop and advance New Mexico’s space industry. The project received seed funding through a taxpayer-approved initiative in April 2007 when voters in Doña Ana County approved the spaceport tax.

Almost every year since, supporters of Spaceport America have announced the “upcoming launch” from their facility or the need for additional tax dollars to expand the Spaceport and its capabilities. To bolster their claims for additional tax money, Spaceport America commissioned a study by the consulting firm Moss Adams of Albuquerque. The study made headlines with the implausible claim that Spaceport America began producing net benefits for New Mexico as early as 2013.

In March 2020, the Rio Grande Foundation tallied up the total costs to taxpayers, determining that New Mexicans have borne a total project cost of $275 million, while revenues approach only $54.3 million for the state over the last 12 years. The vast majority of taxpayer-funded spending related to capital projects and nearly $10 million in operational expenditures. In fact, new information shows New Mexico shelled out an additional $1.5 million in advertising expenses related to the Virgin Galactic flight.

Branson is already a billionaire. Why are New Mexico’s politicians lining the pockets of these already wealthy and successful entrepreneurs through taxpayer-funded, industry-specific subsidies? The impact of corporate welfare disproportionately affects the economically disadvantaged, especially in impoverished communities like Doña Ana County and New Mexico as a whole.

In 2019, the state suffered from one of the highest poverty rates in the nation. The impact of the coronavirus pandemic and the corresponding economic lockdown of the past 15 months has certainly exacerbated our financial woes.

In fact, New Mexico trails the southwest in employment recovery. A recent report by WalletHub highlights the state’s 620 percent increase in unemployment claims, referring to the change in the number of initial unemployment insurance claims in the week of July 5, 2021 compared to the week of July 8, 2019. How can a state in this state afford to help send a billionaire to space?

Sir Richard Branson is now an astronaut. But from my perspective as a New Mexican and taxpayer, he sure seems like a wild-west robber baron, holding up taxpayer stagecoaches of the poorest state in the country to fulfill his personal vendetta of beating fellow billionaires Jeff Bezos and Elon Musk in the billionaire space race. He’s “Six-Gun” Branson, 21st-century robber baron, a stark reminder of our 19th-century industrial past.

In the end, his mission was accomplished. But Six-Gun Branson has only proven that he can launch his spacecraft from any airport with sufficient runway length. I’d hazard a guess that soon he’ll be riding off into the sunset while my fellow New Mexicans are left holding the $275 million bag.

Patrick Brenner is the vice president of the Rio Grande Foundation, New Mexico’s free-market research institute and think tank. An advocate for open government, he leads the foundation’s government transparency and accountability efforts.

Photo Hardo Muller / Flickr
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RGF discusses hotel tax lien/lodgers tax w/ KOAT 7

Recently, RGF’s president was walking downtown and noticed the Hyatt Hotel downtown was completely closed to the public. Physical entry to the property was impossible and his phone calls were not returned.

Ultimately, it came to light thanks to an Albuquerque Journal article that the hotel was closed due to a lack of convention business AND that the City of Albuquerque had filed tax liens against several properties for lack of payment of lodgers taxes. The Rio Grande Foundation has expressed concerns in the recent past about lodgers taxesand agrees that reform is needed, BUT if the business is collecting the tax from its customers, they should be remitted.

Check out the story here and by clicking the image below: